Are Square Transaction Fees Too High? Understanding Your Processing Rates

A business owner decides if they should use Square or a Square POS alternative system

If you’re reading this article, perhaps you’ve already used Square POS and are looking for an alternative for your business. Or maybe you’re a new business still in the research phase and are shopping for a new POS system. Still, others might be existing business owners looking for another POS system in the hopes of finding better software, customer support, or processing fees.

Many small businesses in any of these boats end up opting for Square. And while Square is a great fit for many small businesses, there are some important things to look out for.

Most importantly, Square’s high processing fees can be avoided if you know where and how to shop for a new POS. In this article, we’ll explore the total cost of ownership for Square’s retail POS system and explain why other solutions may be better suited for retailers looking to maximize their sales and keep their costs low. We’ll also introduce you to alternative POS solutions, so you can decide which is right for your business.

Understanding Square POS Fees

Square POS is a popular option for retailers, as it’s known for its easy setup and low upfront costs. In fact, some versions of Square come with a free POS terminal and extraordinarily low software subscription rates. The service, however, comes with some additional charges that many retailers don’t realize before signing up.

Square is a credit card processor in addition to being a point of sale provider. The company charges retailers 2.6% + 10¢ per swipe or dip of a credit card and 2.5% + 10¢ per payment for contactless payments, like Apple Pay and Google Pay. If keyed-in payments are necessary, they charge 3.5% plus 15¢ per transaction — significantly higher than swiped and dipped payments. Additionally, online payments incur an additional fee of 2.9% + 30¢ per transaction.

On top of that, there’s also a $15 monthly fee for each register, and deposit holds may apply to any transactions (higher-risk transactions may also incur additional costs).

Businesses that wish to use POS gift cards must also pay a premium if using Square: 

  • Starter Pack: $2 per card surcharge 
  • Quick Cards: $0.99 per card surcharge
  • Custom Cards: $0.81 per card surcharge

In addition to the fee Square POS charges for each gift card, a 2.6% + $0.10 processing fee is also charged. All of these fees can add up when using Square POS in a retail environment, causing many store owners to look elsewhere for their POS system needs.

Alternatives to Square POS for Retail Stores

Retailers have many POS options to choose from, including some great Square POS alternatives. Here are some important features to consider when looking for an alternative to Square’s point of sale system.

Transaction fees

Square charges a  2.6% + $0.10 fee per transaction for retail stores. In contrast, some POS providers don’t charge any minimums or transaction fees. That means you’ll enjoy maximum savings and get to keep more of your hard-earned profits.

Zero fees for your using gift card

Unlike Square, which charges merchants 2.6% + $0.10 per transaction when using gift cards plus a gift card fee, many POS systems have no such fees. This is excellent news for retailers who want to reward their customers with loyalty rewards or give them incentives with discount offers.

Customer support 

One of the most important factors to consider when choosing a POS system is customer support. Square’s primary form of customer support is via email and social media. Square POS does not offer phone support, which can significantly hinder businesses experiencing technical difficulties. While the company does offer email support, response times can be slow, leaving businesses needing a solution for hours or even days.

Instead, look for point of sale systems with more reliable and faster support. You can’t afford to be unable to accept payments, place orders, or track inventory. Make sure the POS provider offers POS troubleshooting solutions in case of malfunctions.

Some Features That Set KORONA POS Apart

KORONA POS offers a range of features that make it ideal for retail stores, from its intuitive interface to its sophisticated feature set. Some of the most noteworthy features of KORONA POS include the following:

Automatic minimum and maximum inventory levels

Most point of sale software enables manual inventory replenishment. If you have close to 1000 products, this process can take hours. On the other hand, KORONA POS helps you streamline this process with its auto-stock replenishment feature, saving you a whole lot of time and labor.

With this feature, you can set specific maximum and minimum inventory levels, which will be automatically updated when items are sold or returned. This ensures that your store always has the right amount of merchandise on hand at all times, saving you precious time and money.


KORONA POS has strict security protocols that include vulnerability penetration testing on a regular basis and encrypting all payment data according to industry standards (PCI-DSS). This means merchants can accept payments securely without worrying about data breaches or fraud on their customers’ credit card information. You can also set up two-factor authentication in KORONA Studio.

With Square POS, you are at greater risk of being scammed. Since most of Square POS’s consumer support is done via email, you may receive suspicious emails claiming a problem with depositing funds or asking for personal details with clickable links containing malware.

Flexible Integrations

KORONA POS also offers seamless integrations into various online platforms, like eCommerce and loyalty software, so merchants can manage online and offline operations from a unified point of sale system. Plus, an open API means that any retailer can build custom integrations to the platform with ease.

This feature makes it easy for retailers to run their businesses efficiently while saving time and resources. Square, on the other hand, has many more limitations in its software.

Real-Time Inventory Tracking

With robust inventory tracking, you can always stay on top of your store’s inventory levels and be sure that you have the right amount on hand without worrying about overstocking or running out unexpectedly. Square offers no in-depth inventory management, supplier relationship management, stock notifications, or automated inventory features.

Comprehensive Reports and Analytics

The reports and analytics tool in KORONA POS allows you to track and monitor your retail store’s performance in real-time so that you can make informed decisions about how best to run your business. With detailed insights into every aspect of your sales data, KORONA POS also makes forecasting easier.

All in all, KORONA POS is a highly efficient tool for retailers everywhere. Not only does it have a much lower fee than Square POS, but it also provides numerous features to help retailers manage their stores more efficiently and effectively manage their time and resources.


This article has provided a detailed overview of Square‘s POS fees and why they may not be ideal for retail stores. While Square is a popular choice that could work for some merchants, it’s essential to recognize that there are other options. KORONA POS is an alternative that offers competitive pricing for a complete retail POS system and is an ideal choice for retailers looking for a more feature-rich solution with more transparent pricing. So, if you’re looking to cut down on Square’s high fees and want to save money on your POS system, you can try KORONA POS now. Check out KORONA POS today and see what it can do for your business. Click below to get started.

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Written By

Mahougnon Martial Amoussou

Passionate about SEO and Content Marketing. Martial also writes about retail trends and tips for KORONA POS. He loves NBA games and is a big fan of the Golden State Warriors.